Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1887-09-03
Garrett Finally DiSpOSes of His
Immense Property.
THE CONDITIONS OF The SALE.
A Syndicate Formed to Assume Control Ol
the ROad-A Division Of the Various
Interests of the Business.
HOW THE DEAL WAS EFFECTED
The Firms Interested in the Transfer The
Pennsylvania Company Has Hand in
the Mattar-Fuurs Management
of the Lins-Au Author
lied Statement


New YORK, September !. The mysteri-
ous movement OF the stock market during
the past week and the continued rumors
from all sources that some important de-
velopments were hanging over the railroad
and telegraph world were explained by
facts which were made public late this af-
ternOon. After breaking of his uegotia-
tions with Ives 4 Co. Mr.. Garrett went 20
London where the negotiations were cOu-
tinued with J. ). Morgan, and today i
deal was announced comparable in import
ance with the West Shore settlement with
the New York Central and the forming 0f
the Reading syndicate TO reOrganize that
company. Both of these deals were
carried through by Drexel, Morgan & Co.
but in the latter case Edward Lsuterbach
was the most prominent figure as medi-
ator between the Gowen and Drexel inter
ests, and in the agreement now made, he
also takes prominent place. The con-
sumation of the contract made to-day was
held in allegiance until his opinion was
obtained on the question OF whether the
sterling loan made by tine Baltimore and
Ohio Railroad Company affected the tele-
graph system OF the company. Alter
studying the question in all its aspects
he decided that the telegraph lines
were tree from ali liens; and all
receiving tins opinion the agreement in
nature OF a preliminary contract was ex-
ecuted to-day. The parties To the contract
are the Baltimore < Ohio Railroad Com
pany and a syndicate composed Of J. ).
Morgan & Co, Barring Bros. Il Co., Brown,
Shipey Il Co, of London; Drexel, Morgan
| X Co, Kidder, Peabody x Co. and Brown
Bros. x Co, OF this city, and DreNel Il Co,
| of Philadelphia. The most important
point in the contract provides that the
management of the company shall he placed
in competent hands.
| SATISFACTORY To THE SYNDICATE.
| to the syndicate cannot he ascertained, but
4. j. CasSett, the Nice-President of the
| Pennsylvania Railroad is generally be-
/ lieved to be booked as Mr.. CARROTS sue
ceSsOr. Satisfactory contracts are also TO
| 5e made with the Pennsylvania and Read
ing railroads of all business north OF Phila-
delphia, and with all the other trunk lines
entering New York, by which all antago-
nism will be removed and insure the per-
manent working of the Baltimore < Ohio
| in harmony with the other trunk lines. In
addition TO these contracts the lines in pro-
cess of construction from Philadelphia to
/ New York will be suspended in the
construction Just as they now
stand and work on the Staten Island be
stopped. In consideration Of these con-
tracts being signed and with the control in
| their hands the syndicate agrees to relieve
the railroad from its embarrassment by
providing $40, 900, 900 with which to take
mp floating debts This will be represent
ed by $1,000, 900 in Baltimore and Ohio
consolidated fiyes and s., 900, 0OO in stock.
| The floating debt as it stands amounts To
| 5, ,OUO, 600 mostly in the shape of
! CERTIFICATES OF INDEBTEDNESS
scrip and notes OF this amount 81, ,O0O, OOO
/ i said to have matured in the lst inst.
One of the parties to the syndicate author
| lied the following statement ~ the out
come Of the contract:
The position of the Baltimore & Ohio
I Railroad as IN lshmaelite IN the railroad,
sleeping car, express and telegraph busi-
ness is given mp. All the outside enter
prises will be sold to parties to whom
| they will be valuable. The Western
| Union will control it If they do not psr-
chase the lines; and the Pullman Palace
Car Company will take the sleeping car
business. The express business has already
gone to the United States Express Com
pany. The affairs of the railroad company
will be entirely reOrganiZed and placed
| upon a sound financial basis. "
| Drexel, Morgan 4 Co. were iO correspOn-
dence all DAY with their houses in London
and Philadelphia and late in the evening
confirmed the statements that the contracts
and negotiations gwen above had been
| lust signed. Outside Oi the facts given
above they declined to speak. The clause
Of the contract suSpendiDg all work on the
extension from Philadelphia to New York
IL believed the
! THE KEY NOTE or The SYNDICATE
interest IN negotiations, and Is construed to
mean that the Baltimore and Ohio rail
road when divested of all eXtraditiOn
enterprises will be operated practically
/ by the Pennsylvania railroad. The
| following has been published by the firm
Of DreXel, Morgan II Co. A preliminary
\ contract has been executed to-day between
| the Baltimore and Ohio Railroad, Barring
Bros 4 Co. and Brown Shipley < Co.,
! London, and their allied houses on this
side. This contract provides for the nego-
tiation of $5,OOO. 900 B. x .. consolidated
fves and $4,000 h. X .. preferred
stock for the purpose of paying of the en-
| tire floating debt of the company and
placing it on a sound financial basis. The
conditions are as follows:
First-The veri6catiOn of statements,
etc, as made.
Seeond-That the management of the
company shall be placed in competent
/ hands sa.iSf tory TO the syndicate.
Third-That satisfactory contracts shall
be made between the L. x o. and the other
roads for New York business which shall
remove all antSgOnisIn between them on
/ the subject and insure the permanent
working of the'B. 4 y in entire harmony
with the other trunk lines; also, avoid
construction or threat Of construction Of
expensive parallel lines north and east OF
Philadelphia
The houses interested on this side are
Drexel, Morgan 4 Co., Drexel & Co,
Brown Bros, and Kidder, Peabody & Co.
| The Situation In Baltimore.
| RMrrNrnPE Mn Santemher 2-The